Page 4 - AfrOil Week 30 2021

AfrOil COMMENTARY AfrOil

Port Harcourt rehab set to

bear fruit in 14 months’ time

The $1.5bn refinery rehabilitation project is expected to begin delivering refined

products by September 2022 as Nigeria seeks to breathe new life into its downstream

STATE-OWNED Nigerian National Petroleum Overhaul
Corp. (NNPC) said last week that its overhaul Following the agreement of a $1bn loan from
WHAT: of the Port Harcourt oil-refining complex was Cairo-based African Export-Import Bank
Progress is finally being in full swing. Following the completion of the (Afreximbank) in February, NNPC awarded
made on work to revamp repairs, the plant is expected to deliver its first an engineering, procurement and construction
the dilapidated Port petroleum products by September of next year, (EPC) contract for the project with Italy’s Maire
Harcourt facility. it stated. Tecnimont in April.
The unit is scheduled to come back on The $1.5bn agreement followed a $50mn,
WHY: stream in stages, with the full project not antic- six-month “integrity check” performed by Tec-
A billion-dollar loan ipated to be completed until late 2024. The nimont firm in 2019, with fellow Italian firm
was agreed earlier in staged approach was first announced in March Eni contracted as technical adviser. This work
the year to finance the by Nigerian Minister of State for Petroleum included equipment inspection at the site, as
project, and Italy’s Maire Resources Timipre Sylva. However, at the time well as ‘relevant engineering and planning
Tecnimont was selected
for the EPC contract. he suggested that the Port Harcourt Refining Co. activities’.
(PHRC) would return to 90% of its nameplate Speaking to Nigeria’s Punch daily, NNPC’s
WHAT NEXT: 210,000 barrel per day (bpd) capacity within 18 head of public affairs, Kennie Obateru, said
NNPC is working to find months. that Tecnimont has already mobilised workers
the right balance between The second phase of work will be completed to the site. “The work is progressing,” he said.
operator and shareholder within 24 months and the final stage within 44 “We said it will be completed within 18 to 44
in the country’s down- months, Sylva said. months when counting from April this year.
stream sector, though In either case, NNPC is sure to welcome any By 18 months, some part of the refinery will be
repairs appear to have improvement to its refining slate, much of which producing. The total rehabilitation job will be
taken precedence. has been mothballed. completed in 44 months.”

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